Federal prison rules push for “financial responsibility” while impoverishing people

Proposed changes to the Inmate Financial Responsibility Program by the Bureau of Prisons risk pushing incarcerated people and their families further into poverty

by Danielle Squillante, February 20, 2025

This week, along with the National Consumer Law Center and expert Stephen Raher, we submitted comments on the federal Bureau of Prisons’ updated proposed rules for its Inmate Financial Responsibility Program (IFRP). These rules, which we first wrote about when they were proposed in 2023, are purported to be aimed at ultra-wealthy people in federal prisons who amassed unusually large amounts of money in their commissary accounts while failing to pay legal fees and restitution. However, they’re written so broadly that they’d make the lives of the vast majority of incarcerated people and their loved ones, who are generally poorer and from disadvantaged backgrounds, much more difficult and threaten their success after their release from prison.

The Bureau of Prisons (BOP) has adjusted the rules since they were first introduced to make them slightly less punishing, but they still would have a devastating effect on incarcerated people and their families. Under these rules, the BOP would:

• Garnish 10% of wages earned by incarcerated people, which can be as low as $0.12 per hour.
• Take half of the money in an incarcerated person’s commissary account that is in excess of $250 as a one-time seizure of funds at their initial classification meeting.
• Through a series of complex and legally dubious formulas, seize a portion of the money that incarcerated people receive from their families and friends, making it even more difficult for incarcerated people to meet their basic needs behind bars.

Although the Bureau addressed some of the more egregious elements of the rules as initially drafted, the proposed changes to the IFRP are a misguided response to the false concerns that incarcerated people are hoarding money in their commissary accounts while refusing to pay legal debts. The Bureau reviewed data on commissary accounts and found that as of December 2024, only 2% of commissary accounts had balances greater than $5,000 while approximately 77% of commissary account balances were $249.99 or less. The overwhelming majority of people incarcerated in federal prisons are struggling to afford basic necessities — not living a life of luxury behind bars.

Proposed changes to the IFRP further burden incarcerated people and their families

People incarcerated in state and federal prisons were, before they went to prison, some of the poorest people in the country — and incarceration only pushes them further into poverty. In federal prisons, incarcerated people who are working earn between $0.12-$1.15 per hour. These meager wages don’t begin to cover the range of costs associated with being incarcerated, which include commissary, communication costs, and medical co-pays, to name a few. Most people, whether they have a work assignment or not, rely on outside support to meet their basic needs.

The rules ignore how frequently incarcerated people rely on items purchased from commissary to meet a range of needs throughout the entirety of their sentence. Almost everything in prison has a price tag, even for people who are considered indigent, and products are often marked up to prices far above what someone outside of the prison walls pays. Additionally, because prison meals are typically poorly portioned and of low quality, incarcerated people often rely on commissary to supplement their diet. They also rely on it for basic writing materials, basic hygiene items, clothing and shoes, religious items, and electronic devices such as fans. These additional expenses were not factored into the Bureau’s thinking on these rules but constitute a considerable cost to incarcerated people.

The proposed changes to the IFRP are particularly concerning now that the Bureau of Prisons has ended its pandemic-related phone policy of providing 500 minutes of free phone calls to incarcerated people. As of January, phone calls cost $0.06 per minute, while video calls usually cost $0.16 per minute. Although some people are eligible for free phone calls up to 300 minutes if participating in First Step Act-related programming, other families of incarcerated people will have to manage this added expense to remain connected to their loved ones.

According to the Bureau of Justice Statistics, 57% of people incarcerated in federal prisons have one or more dependent children. The incarceration of a parent or caregiver results in the potential loss of family income while creating additional costs for the family to manage — often making it difficult for families to meet their basic needs. Numerous family members of incarcerated people submitted public comments stating how difficult it would be for them to shoulder additional costs as they are already struggling financially. The proposed rules will further burden incarcerated people and their families — but they don’t have to.

An alternative approach that meets the Bureau’s goals

Rather than adopting these new rules, in our letter, we recommend an alternative approach that accomplishes the goals of the program without further burdening incarcerated people and their families. Key provisions of our recommendations include:

• Protect incarcerated people who have commissary account balances that are less than the federal poverty level from having their money seized.
• Shield incarcerated workers from having their wages garnished unless and until they earn at least the federal minimum wage.
• Exempt incarcerated people from IFRP participation for at least two years prior to reentry, given the numerous costs associated with transitioning back into the community.

The overwhelming majority of people in federal prisons and their support systems on the outside are struggling to meet their basic needs. The updated proposed changes to the IFRP are less severe than the slash-and-burn approach to debt collection they initially took, but they would still push incarcerated people and their families deeper into poverty. We urge the Bureau of Prisons to consider our alternatives to their proposal.